Japan's households bank loans drop at record in Q2

Japan's households loan demand in the second quarter of 2014 plunged at the fastest pace on record, which could be ascribed to the sales tax hike since April, local media reported Thursday.
The index in the three months period through June dropped to minus 10 from the previous quarter's plus 20, falling at the sharpest pace since the central bank began the polling in April 2000.
Loan officers cited the sales tax hike from 5 percent to 8 percent since April 1 as the major factor for the decrease in loan demand.
The results reinforced the view that consumers had front-loaded their loan demand, such as for purchasing homes and cars, ahead of the tax hike, and that such a move had caused the subsequent decline.
By sector, household demand for housing loans fell to minus 17 from plus 14, while that for consumer loans dropped to plus 2 from 15.
Meanwhile, the country's corporate loan demand remained flat at plus 5, reflecting their active capital spending, as well as mergers and acquisitions.
The survey was conducted among 50 banks and shinkin cooperative banks from June 10 to July 8.